The CBOE Volatility Index (VIX), a key measure of market volatility and investor fear, has declined for the fourth consecutive day, falling over 15% during the week to close at 24.85. This marks its lowest level since the April 2 tariff hikes announced by former President Donald Trump. The VIX had previously surged to a high of 60.13 but has now returned to the 25 range, indicating a calming in the options market. The S&P 500 (SPX) closed the week with a strong bullish engulfing candle following a selloff earlier in the week, with market breadth signals turning positive. Analysts interpret the VIX's drop below 25 as a sign that the worst of the recent market turmoil may be over, noting that historically, such a pattern has often preceded higher stock prices over the next six to twelve months.
The VIX closed beneath 25, after a spike above 50. Option markets are calming down, a good sign. This is yet another clue the worst is likely over. Only once did stocks do this and go on to make new lows after this signal, but higher 6- and 12-months every time. https://t.co/zjMymxAnT0
📉 VIX Falls to Lowest Level Since April Tariff Hikes The CBOE Volatility Index (VIX), a key gauge of market fear, dropped for the fourth straight day Friday, down over 15% for the week, reaching 24.85 — its lowest since Trump’s April 2 tariff hikes. After surging to 60.13 on https://t.co/JlP2OFOdKm
$SPX closing the week with a strong bull engulfing candle after Mondays selloff faked out a lot of participants. Breadth signals firmly on the bullish side this week and alot of potential positives building into May as VIX bleeds lower now back to 25 handle https://t.co/p2ia6Faw5C